Eraring set to close seven years early in 2025
Chris Briggs,Research Director, Institute for Sustainable Futures, University of Technology Sydney In a major step forward for Australia’s clean energy transition, the country’s biggest coal-fired power station Eraring is set to close seven years early in 2025, Origin Energy announced this morning. Eraring has been operating for 35 years in the central coast of New South Wales. Last year, it alone was responsible for around 2% of Australia’s greenhouse gas emissions, based on calculations from electricity market and emissions data. The fundamental reason for its early closure is the brutal impact the growth of renewable energy is having on the profitability of coal plants. Origin has announced it will be building a large, 700 megawatt battery on-site in its place to store renewable energy. This announcement follows the acceleration of other major coal plant closures: Liddell power station is scheduled to close in 2023, Yallourn’s closure was brought forward to 2028, and only last week AGL Energy edged forwards the scheduled closure of two more coal plants. This is a welcome step with transition planning by Origin – but also underlines the risks of Australia’s clean energy transition accelerating without a national plan for the exit of coal. Why is this happening? Old power stations are excellent sites for batteries due to their existing connections to transmission lines and lots of electricity capacity. This has also been announced for the closed Hazelwood and Wallerawang coal power stations. Over the past 12 months, the market share of renewable energy has increased to over 30%. In particular, the rapid growth of rooftop solar and solar farms in the middle of the day has sent daytime wholesale electricity prices crashing. To stay open, coal plants are using a variety of coping strategies. This includes cycling their output down on sunny days and ramping back up for higher prices as the sun sets and demand increases at the end of […]